Revista de Economía y Negocios

Fraud Risk Management

Abstract

Jidong Chen

Understanding the weak points in your business is the first step in preventing fraud. You can analyse the risks that your business confronts based on its particular complexity, scale, products, and market exposure by doing a thorough risk assessment. Risk assessment examines all potential risks, their likelihood of occurring, and the associated costs. Employees are the first to be assessed. It's important to have a comprehensive awareness of how employees deal with corporate resources on a daily basis. Internal fraud is frequently fuelled by the advantages and opportunities offered by the company. Senior management ought to think about evaluating their system installation and communication strategies. In addition, risk might occur outside, particularly if a firm deals with from there, a framework that is cost-effective is built using a risk-tolerance limit. The most money an organisation is willing to lose is known as its risk tolerance limit. This restriction is helpful because it provides a foundation upon which to build your plan and makes risk assessment quantitative. Risks that exceed the limit and are consequently most harmful to the organisation can receive more attention.